For any company marketing their services or products, I thought you might be interested in this recent article and slant on the Consumer Protection from Unfair Trading Regulations coming into place next month:

www.computerbuyer.co.uk/news/185193 (http://www.computerbuyer.co.uk/news/185193)

The article provides commentary on the Consumer Protection from Unfair Trading Regulations (http://www.oft.gov.uk/advice_and_resources/small_businesses/competing/protection) from more of an internet marketing perspective, focusing on the implications of:

"Banned Practices, Schedule 1, practice 22, falsely claiming or creating the impression that the trader is not acting for the purposes relating to his trade, business, craft or profession, or falsely representing oneself as a consumer."

and how this might relate on a broader level to more viral buzz marketing internet practices, which is welcome since the documentation on the office of fair trading site (http://www.oft.gov.uk/advice_and_resources/small_businesses/competing/protection) focuses more on a non-internet example in this case, e.g. used car dealer parking car outside their house with a for sale sign on it making you think it is a private sale. I'm thinking if there is broader scope, then it could also apply to other practices awash on the internet like affiliate schemes, reseller schemes, paid referral schemes etc?

There are some interesting issues in this new legislation and I suggest that any small business invests the time and reads it. One of the areas I find interesting in the Banned Practices is practice 11, "using editorial content in the media to promote where a trader has paid for the promotion without making that clear" - I know of a few magazines and local papers that are guilty of this, i.e. that 2 page 'editorial' article on a company appears mainly because the company is a heavy advertiser too.

I'd be very interested to hear other people's thoughts on this legislation. I'm sure there will some companies here that can spot some dubious practices of their competitors which might get caught out with the new legislation.
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Also BERR/DTI are speaking at a conference in London on the new regulations on 30th April (details from Singlelaw Conferences). The OFT web site has draft guidance on the regulations too.
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I'm surprised this thread didn't get more replies...

The OFT draft guidance can be read here: http://www.oft.gov.uk/shared_oft/reports/consumer_protection/oft931con.pdf

Anyone have any idea how this affects people using their delicious/stumbleupon accounts to bookmark their own sites?
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It will certainly catch viral and buzz marketing and from tomorrow people will have to make it clear is something is advertorial rather than pretend to be a private person recommending in an unbiased way a product on line etc.
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Whole host of e-trading practices that are affected. Remember, to be in breach is to commit a criminal offence. Further the Regs begin with a broad future-proof (to cover new emerging trading techniques) offence of not trading honestly. Apart from that one the others are strict liability offences meaning that ignorance is no defence. In case you think that Trading Standards will be too under resourced to find you out, beware whistle blowing by your competitors. Indeed maybe whistle blow yourself if you think a competitor is using unfair tactics. Also savvy customers could use a regulation breach to enforce chargebacks on their credit cards.


Here are some examples that come to mind:-

1. Selling goods on eBay for others (e.g. trading assistants) while appearing to be selling your own goods, as well as generally reselling goods under normal auction to give the impression of a private sale.

2. Selling goods you cannot be sure you can deliver from stock/supplier fulfillment (eg back ordering on drop shipping schemes) - this makes ensuring your online catalogue is always up to date, If you drop ship you need to insist on special terms of business with the drop shipper supplier to protect you but even then this will not protect you from criminal proceedings under the Regs as ignorance is no defence.

3. Claiming to be a bigger org than you are - eg a sole trader referring on his website to the 'sales team' or 'support team' etc

4. Catching customers with a 'free lunch' offering that escalates into payment by default. Not illegal as such but care will be needed with website content.


These further consumer laws give all the more reason to take steps to identify hybrid buyers (ie who buy product for both personal and business use ?eg laptops) so as to remove their consumer rights.


The Regulations , as well as tips to identify hybrid buyers, are included in my weekly webinars on website law. (http://v2.theclaimroom.com/index.lxp?host=279&area=form&form=228)
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